The following Pensions practice note Produced in partnership with Gary Delderfield of Eversheds Sutherland provides comprehensive and up to date legal information covering:
Where there is a transfer of a public service from central government to a private sector contractor, special protections will normally apply in respect of the pension rights of the transferring employees. These protections were originally contained in Annex A of the HM Treasury Guidance ‘Staff Transfers From Central Government: A Fair Deal for Staff Pensions’ (old Fair Deal).
Old Fair Deal provided protection over and above the basic minimum protection provided by the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE), SI 2006/246, the Pensions Act 2004, ss 257–258 and The Transfer of Employment (Pension Protection) Regulations 2005, SI 2005/649.
For further information on TUPE, see TUPE—what pension benefits should the transferee provide? and TUPE and Beckmann—the pensions exception.
Old Fair Deal was issued in June 1999 and is addressed only to central government departments and agencies. Old Fair Deal is guidance only and not legally binding.
Old Fair Deal cover situations where there is a transfer of employees as part of a business transfer and, so, is mainly concerned with transfers between government and the private sector. Old Fair Deal does not apply to transfers of staff within the public sector, although the government did expect the old Fair Deal standard to be applied to transfers from one public sector employer to another.
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